9476

Intel (INTC) Reports Earnings Tomorrow. What To Expect


Radek Strnad /
2022/10/26 3:04 am EDT
Add to Watchlist

Computer processor maker Intel (NASDAQ:INTC) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter Intel reported revenues of $15.3 billion, down 21.9% year on year, missing analyst expectations by 14.5%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.

Is Intel buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Intel's revenue to decline 20.2% year on year to $15.3 billion, a further deceleration on the 4.68% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

Intel Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing ten downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.64%.

Looking at Intel's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Lam Research delivered top-line growth of 17.8% year on year, beating analyst estimates by 3.36% and Texas Instruments reported revenues up 12.8% year on year, exceeding estimates by 1.9%. Lam Research traded up 2.37% on the results, and Texas Instruments was down 4.74%. Read our full analysis of Lam Research's results here and Texas Instruments's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks down on average 0.04% over the last month. Intel is down 1.96% during the same time, and is heading into the earnings with analyst price target of $35.5, compared to share price of $26.99.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.